As manufacturers continue to develop electric motorcycles, increased incentives will spur popularity with consumers, according to a forecast report from Future Market Insights.
The electric bike market — which consists of electric motorcycles, scooters, and bicycles — is projected to have a compound annual growth rate (CAGR) of 3.1% and is expected to reflect a value of more than $27 billion by the end of 2027.
Several drivers are expected to influence market growth. For one, government subsidies and increased incentives will likely attract more customers to EVs than to traditional combustion models. Also, rising disposable income among buyers is expected to pump up sales. Powersports vehicles are typically viewed as “wants” not “needs,” so discretionary spending is often the source of consumer funds for motorcycle purchases.
Other driving factors include rising fuel prices, less sound emission, better conservation of fuel, and better efficiency. Additionally, consumers may opt for the EVs because of their cleaner emissions.
Several OEMs are producing electric vehicles. Harley-Davidson Inc. has plans to aggressively invest in electric vehicles, with intentions to release its first electric motorcycle in the coming months, the OEM reported in February. UTV manufacturer American LandMaster has also seen a growing customer interest in electric vehicles.
Electric bikes are growing in popularity in Asian markets, too, with India’s first electric motorcycle being built by Ultraviolette Automotive Pvt. Ltd.